to 29 September 2018 Group Highlights Operating Revenue EBITDA - - PowerPoint PPT Presentation

to 29 September 2018

1

Group Highlights

+50bps

Operating margin

16.2%

+7.8%

Revenue

R10.5bn

+11.6%

Dividend per share

311.4c

+11.6%

HEPS

494.3c

+11.1%

EBITDA

R1.9bn

+12.4%

Profit to shareholders

R1.3bn

+5.0%

Inflation

Q2 2018: +4.5% Q3 2017: +4.8% Q3 2018

27.5%

Unemployment

Q2 2018: 27.2% Q3 2017: 27.7% Q3 2018

2

• 0.7%

GDP Growth

Q1 2018: -2.6% Q2 2017: +2.9%

 Two consecutive periods of declining GDP growth putting SA into technical recession  Unemployment remains unacceptably high. Job creation policies from government are critical for sustainable economic growth  Rand depreciated 21% (Jan to Sep ‘18 avg close), negatively impacting importers & economy  Rising inflation driven by fuel prices, VAT rate increase from 14% to 15% on 1 April ‘18 and a weakening Rand

Q2 2018

R14.06

ZAR/USD rate

Q2 2018: R12.65 Q3 2017: R13.18 Q3 2018

Macroeconomic environment

Source: Stats SA, Thomson Reuters Eikon

3

• 1.3%

Household expenditure

Q1 2018: +1.0% Q2 2017: +3.8%

22

Consumer confidence

• 1.0%

Disposable income

Q1 2018: +0.9% Q2 2017: +4.6%

+3.7%

Retail sales

Q2 2018: +3.8% Q3 2017: +8.0%

Index points

 While still optimistic about their future prospects, consumers’ short term reality has been one of continued constrained spending power  This has been reflected in household expenditure declining in Q2 2018, led by reduced spending on durables & semi durables  Disposable income has been falling & now reports negative growth across households, a reflection of weak job & consumer markets  This has led to retail sales momentum slowing, with growth above GDP likely driven by rising consumer price inflation

Consumer environment

Q2 2018 Q2 2018 Q2 2018 Q3 2018 Q1 2018: 26 points Q2 2017: -9 points

Source: BER, SARB, Stats SA

4

 Average comparable sales across 5 retailers: MSM, MRP, TFG, TRU & *WHL) over the last 10 years. Current levels reflect the tough economy  Consistent downward trend in GDP growth & household expenditure since the global financial crisis recovery

SA retail environment

• 3
• 1

1 3 5 7 2008 2010 2012 2014 2016 2018 YTD % change Comparable sales Household expenditure GDP Global financial crisis Technical recession

Source: J.P. Morgan company reports *WHL: sales weighted average of SA Food & FBH

5

Key reasons for choice of retailer MRP the most shopped apparel retailer in the last month

Brand Store card Range/selection Other Promos and specials Quality Fashionability Value for money Price 6% 2% 2% 1% 5% 9% 7% 30% 0% 5% 10% 15% 20% 25% 30% 35% 40% 37%

Source: HSBC ‘Anatomy of the consumer’ Sep 2018

Spar Checkers Ackermans Edgars Woolworths Clicks Pick n Pay Pep Jet Truworths MRP Shoprite 33% 21% 26% 20% 12% 31% 37% 34% 19% 12% 38% 68%

Source: Broadcasting Research Council – Establishment Survey Products & Brands Oct 2018

Consumers are looking for value

0% 25% 50% 75%

6

Source: Thomson Reuters Eikon FY18 Market: Average across 4 SA retailers

Sound long term investment case

Debt/equity

MRPG: 3.3% Market: 45.9% MRPG: 19.0% Market: 13.3%

ROE

MRPG: 39.2% Market: 13.7%

ROA

MRPG: 29.2% Market: 10.6%

Operating cash flow/sales

40 30 20 10 13 22 23 15 36 FY’18 ROIC (%)

Comp A Comp B Average Comp C MRPG

10 year % change in ROIC

Source: Company financials

• 10
• 20
• 30
• 40
• 9
• 16
• 21
• 37

1 40 30 20 10

Highest Return on Invested Capital (ROIC)

2018 2017 % change Profit attributable to shareholders (R’m) 1 279 1 138 12.4%

• W. Avg shares in issue (000)1

258 630 258 196 0.2% Basic earnings per share 494.4c 440.9c 12.1% Addbacks (R’m)2 0.1 5 (101.9%) Headline earnings (R’m) 1 279 1 143 11.9% Headline earnings per share 494.3c 442.9c 11.6% Shares for diluted earnings (000)3 265 030 263 436 0.6% Diluted earnings per share 482.4c 434.1c 11.1%

Dividend per share4 311.4c 279.0c

11.6%

7

Earnings & dividend per share



1Movement relates to LTI schemes’ shares vesting. Shares

previously held by trusts now back in the market 

2Loss on disposal/ impairment of PPE & intangibles



3Higher dilution impact than PY

• weighted average share price 37.2% higher
• weighted average share options outstanding 4.2% lower



4Payout ratio maintained at 63% of HEPS

8

Retail sales growth drivers

+6.2%

RSA

+11.4%

Non RSA

+7.5%

Cash

+2.2%

Credit

+6.4%

Store

+30.1%

Online

+2.9%

Unit growth

+4.5%

RSP inflation

Geography Tender type Channel Merchandise

9

Revenue & profit growth in all chains

+5.9% +8.3% +7.1% +4.5% +23.5% Growth +8.4%

*RSOI: Retail Sales & Other Income

56.6% 16.4% 6.5% 7.0% 6.9% 6.6% Contribution

Trading division RSOI

mrp mrpSport Miladys mrpHome SheetStreet mrpMoney

Apparel Home Financial Services & Cellular

+6.2% +11.2% 16.9% +7.2% +13.8% 14.3% +23.5% +3.8% 31.1%

*RSOI Operating profit Operating margin

Trading segment

+8.4%

10

R'm 2018 2017 % change Retail sales & other income (pg 11)1 10 436 9 711 7.5% Gross profit2 4 278 3 918 9.2% Expenses3 2 987 2 774 7.7% Profit from operating activities 1 693 1 526 10.9% Net finance income 101 67 49.9% Profit before taxation 1 794 1 593 12.6% Taxation4 515 454 13.5% Profit after taxation 1 279 1 139 12.3% Profit attributable to shareholders5 1 279 1 138 12.4% 

1RSOI growth first 4 months FY19 (SENS) +7.4%



2Mainly due to improved markdowns in all chains



3Excluding Kenya growth in overheads of 6.6% is lower than RSOI

growth of 6.9% 

4Effective tax rate 28.7% (PY 28.5%)



5Acquired minority interest in mrpMobile MVNO in Jan 2018

Group income statement

11

R'm 2018 2017 % change Retail sales1 9 738 9 135 6.6% Total other income 698 576 21.2% Financial services & cellular (pg 28)2 673 545 23.5% Other3 25 31 (18.7%) Total retail sales, interest & other income 10 436 9 711 7.5% Finance income4 103 67 54.8% Total revenue 10 539 9 778 7.8% 

1Retail sales growth per trading update 1 Apr to 4 Aug ’18 of 6.6%



1Easter/school holidays in Mar ’18 vs Apr ’17



1Sales growth higher than market growth per *Stats SA of 3.7%

(Type D +3.3%; Type E +6.4%) 

2Strong growth in cellular



3Excluding insurance claim of R11m in PY growth was 25.1%



4Interest on higher cash balances (refer cash flow pg 33)

Revenue analysis

1Excludes VAT *Market per Stats SA includes VAT

12

80 85 90 95 100 105 110 115 120 Apr May Jun Jul Aug Sep index to 100 (ZAR) BWP KES NGN AUD GHS ZMW

Stores total Sales contr. Growth local Growth ZAR Namibia 40 35% (5.7%) (5.7%) Botswana 25 22% 5.6% 7.5% Swaziland 11 8% 33.6% 33.6% Lesotho 5 4% 10.7% 10.7% Total BNLS 81 69% 3.0% Nigeria 5 5% (11.1%) (9.2%) Zambia 11 9% 31.1% 21.4% Kenya 12 7% Ghana 4 5% 32.6% 25.0% Australia 3 2% (38.2%) (39.9%) Total owned stores 116 97% 11.7% Franchise & online 11 3% 1.4% Total 127 100% 11.4%

Non RSA sales

Local currency performance against ZAR

 Performance in Africa viewed on a portfolio basis  Stronger Rand in Q1 FY19, depreciated in Q2  Kenya includes recently acquired franchise stores  Franchise stores include recently opened stores in DRC &

• Uganda. Excluding Kenya, growth was 53.7%

 Australia reduced space by 34.7%

13

Nigeria

• Port congestion & strikes have been impacting performance
• Significant reduction in lead time & improved stock flow

since end Aug 18 - positive impact on sales growth

• Long term opportunity exists in Nigeria - growing middle

class & low international brand penetration

• Commissioned local advisors to undertake a detailed

process analysis to support future growth opportunity

• Namibia’s poor economic climate continues to impact

performance - high unemployment in mining & construction

• Botswana Swaziland & Lesotho performed well with
• pportunities existing for further growth

Zambia

• Double digit sales growth at strong operating margins
• Sheet Street test stores (2) trading ahead of forecast

Corporate owned Franchise Not present

Kenya

• All 12 franchise stores acquired in May ’18

were trading by mid June (7 apparel, 5 Home)

• Performance impacted by new customs

processes, mode of transport requirements & duty increase. Expect better performance in H2

Africa

Ghana BNLS

• Improved growth across all stores
• Improved stock flow & inventory levels
• New store space identified

14

15 new stores 0 expansions 2 reductions 1 closures

stores

495

7 new stores 1 expansions 3 reductions 0 closures

stores

178

2 new stores 0 expansions 2 reductions 0 closures

stores

107

8 new stores 1 expansions 4 reductions 1 closures

stores

301

2 new stores 0 expansions 2 reductions 4 closures

stores

205

Closures Reductions Expansions New stores Nett space Stores

6 13 2 34

Space growth : w.avg

• 1.0%
• 1.4%

0.4% 3.4% 1.4%

: closing

• 1.1%
• 1.7%

0.4% 3.3% 0.9%

Space growth

stores

1286

Space growth analysis

15

 3.7% growth in new space, 1.4% net of closures & reductions  New store growth led by mrpApparel  Opportunity continues for space optimisation in Miladys, mrpHome &

• mrpSport. ~5% of total space still to rationalise

 Ongoing focus on operational metrics - H1 sales densities up 6.2%  147 leases renewed: avg escalation +6.2%; agg base rentals reduced

550000 600000 650000 700000 750000 27000 29500 32000 34500 2014 2015 2016 2017 2018 H1 FY'19

m² Rm-² Sales density (LHS) Weighted avg. gross space (RHS)

750 000 700 000 650 000 600 000 550 000 43 500 32 000 29 500 27 000

m-²

5 year CAGR to FY18 Sales density: +5.2% Space: +3.2%

16

Gross profit margin

Merchandise GP

39.8%

Cellular GP

13.1%

Merchandise GP

43.3%

Cellular GP

19.1%

Merchandise GP

42.5%

Cellular GP

18.8%

 Group GP% increased 60bps with gains across all divisions  Merchandise GP% improved 80bps. Gains & lower markdowns in all chains  Cellular GP% improved by 30bps. Gains not as high as PY due to product mix changes & focus on instore rollout

39.2% 42.0% 42.6%

2016 2017 2018

17

 Comparable store expenses up 5.7%; non comparable store expenses up 2.2% driven by space growth, Kenya acquisition & cellular expansion  Rental costs increased 6.9%

• basic store rentals & operating costs up 6.1%
• higher straight line lease adjustment (new & renewed store

leases). Improved base rentals & escalations

• lower provision for onerous leases

 Employment costs up 8.8%; comparable stores 6.5%  All other costs up 8.2%

Selling expenses (R’m)

2018 2017 2 271 2 104 % change 7.9%

Overhead expenses

18

 Employment costs up 6.2%, in line with avg. annual

• increases. Impact of additional staff appointments offset by

lower incentive provision  Increased people investment (recruitment, talent development and learnerships)  Amortisation up 33.8% relating to IT projects capitalisation in prior year  All other costs (excluding the above) up 2.3%

Overhead expenses

Administrative expenses (R’m)

2018 2017 716 670 % change 6.9%

2018 2017 % change Retail sales1 R5 887m R5 562m 5.8% Comparable sales 3.0% 7.8% Unit sales 66.8m 65.7m 1.6% RSP inflation2 5.1% 2.6% Weighted average space growth 2.9% 3.4% Trading density R39 670m-2 R37 336m-2 6.2%

1Excludes franchise & VAT 2Includes VAT 3Market per Stats SA Type D retailers, excluding mrp sales & VAT

 Sales growth ahead of market3 growth of 2.1%  28 of 30 departments grew sales, with more full priced items being sold. Have identified areas for further improvement in performance, mainly in casualwear & kids outerwear  Inflation led by mix & lower markdowns  Double digit operating profit growth achieved via profit wedge - GP% improvement & overhead management  Won the Generation Next Coolest Clothing Store award in May 18. Voted the 17th most valuable brand in SA - Millward Brown  Product quality & price are competitively positioned reinforcing our fashion value offering (pg 20)

19

Strong value positioning

LEADER CHALLENGER NICHE UNFAMILLIAR

VALUE

FASHION

Fashion value matrix: 2018

MRP COMP I COMP B COMP A COMP D COMP E COMP F COMP G

20

Source: Nielsen COMP H COMP C

21

37%

MRP

20% 13% 13% 7% 9% 23% 16%

Comp A Comp B Comp C

50% 71% 74% 68%

0% 20% 40% 60% 80% 100%

Worse now Same as before Better now

 Perception score is used as a benchmark for brands that consumers are most likely to engage with in the next 12 months  Mrp quality & fashion improvements have been clearly noticed by consumers

Consumer quality & fashion perception*

Assortment quality & width

*Based on the last 12 months. Source: UBS

 Mrp range ranks 5th across apparel retailers in RSA  Size similar to international & premium brands; significantly bigger than value competitors

Source: Retailmap survey 2018

H&M Woolworths Cotton On Truworths mrp Miladys Edgars Foschini Ackermans Identity Legit Jet

3000 2000 1000

2621 1792 1341 1330 1235 834 807 536 382 374 292 422

Number of options

22

Value competitor International competitor

Jun '18 Jun '17 Source: Retailmap survey 2018

Price tier analysis

Price position maintained

lower lower middle middle upper middle upper

0% 50% 100%

91% 91% 9% 8% <1% 1%

0% 50% 100%

89% 85% 11% 15% <1% 0%

0% 50% 100%

11% 8% 26% 19% 26% 33% 21% 17% 17% 24%

Price differential to average

Woolworths

0% 50% 100%

• 100%
• 54%
• 55%
• 57%
• 52%
• 50%
• 51%
• 38%
• 38%
• 4%
• 7%
• 9%
• 7%

Survey Average

5% 7% 1% 9% 35% 15% 29% 29% 18% 34% 48% 49% 73% 68%

Truworths H&M Cotton On Foschini Miladys Identity Edgars Refinery Legit Jet Ackermans mrp

Jun '18 Jun '17

• 50%

mrp

23

Strong eCommerce performance

10.3 million views in H1

Social media:

In-App ‘tap to shop’ 83% of mrp shoppers active on FB

+32%

Revenue

2nd

Online Store

Ranked

+26%

Orders

+29%

Online users

R480

• Avg. basket size

Enabled by delivery

 Click & collect orders increased 34% & contribute 53% of total orders, enhancing operating margins  25% improvement in overall delivery time  Store express remains our fastest & best value offering to

• ur customer: cost R35; lead time 2 - 3 days

Enabled by user experience

 62% of in-store customers browse online before shopping  83% of mrp.com users visits the site monthly, up from 77% LY, and 67% weekly, up from 64% LY  Active app users increased 152% (25% of total users) Targeted & cost effective marketing channel Driving traffic & sales to mrp.com Good support to traditional media

2018 2017 % change Retail sales R691m R644m 7.2% Comparable sales 2.3% (4.6%) Unit sales 5.8m 5.6m 3.6% RSP inflation 4.4% 0.9% Weighted average space growth 2.6% 6.3% Trading density R22 491m-2 R22 294m-2 0.9%

24

 Double digit sales growth in equipment, accessories, menswear & footwear  Growth opportunities exist in ladieswear (fitness & outdoor), junior departments & category extensions  Online sales up 40.4%, up 10 places in comparative store ranking  Double digit GP% growth achieved at improved margins  6 of the top 11 finishers at this years Comrades Marathon wore Maxed running shoes

2018 2017 % change Retail sales R706m R652m 8.4% Comparable sales 8.2% 11.8% Unit sales 3.5m 3.4m 3.9% RSP inflation 5.2% 9.3% Weighted average space growth (1.7%) (0.5%) Trading density R24 192m-2 R22 386m-2 8.1%  Good product execution to a niche customer segment enabled further sales growth off a tough base of 11.4%  Sales growth ahead of market for all months in H1  Good performance in Athleisure (+25.2%) & casualwear (+8.7%). Opportunities in smartwear (2nd largest department) which grew 1.2%  Non apparel up 11.5%, with most departments reporting double digit

• growth. Opportunity in costume jewellery & handbags

 Successful test of impulse fragrances in 30 test stores, further rollout of 50 stores planned in H2  GP% improvement via lower markdowns & strong overhead management resulted in double digit operating profit growth

25

2018 2017 % change Retail sales R1 703m R1 558m 9.3% Comparable sales 6.6% (3.4%) Unit sales 15.6m 14.7m 6.1% RSP inflation 3.9% 2.1% Weighted average space growth (1.6%) 0.3% Trading density R27 100m-2 R25 238m-2 7.5%  Bedroom, bathroom & living room softs were the best performing departments accounting for ~55% of sales  Encouraging furniture sales growth of 8.6%  Online grew by 29.0% aided by improved furniture stock flow - purchased through instore kiosks & fulfilled from DC  GP% improvement (lower markdowns) & well managed overheads resulted in double digit operating profit growth  Kasi Star Brands Homeware & Décor category winner  Test store (340m-2) opened in Wroclaw, Poland on 26 October 2018

26

2018 2017 % change Retail sales R726m R695m 4.5% Comparable sales 2.5% 1.1% Unit sales 8.2m 7.7m 6.8% RSP inflation (1.3%) 5.2% Weighted average space growth 1.9% 0.1% Trading density R30 784m-2 R29 730m-2 3.5%  Sales growth Q1 +2.4% - strong kitchen performance (+19.8%), while bathroom (+2.2%) & bedroom (+0.9%) struggled  Q2 +6.5% - more balanced assortment in bathroom (+14.6%) & bedroom (5.5%)  Consistent performance in living room throughout the period (+5.2%)  Overhead growth was higher than gross profit growth, which impacted

• perating profit growth

27

R’m 2018 2017 % change Cellular 296 195 52.3% mrpMobile MVNO 92 84 9.2% Cellular 119 14 733.9% Airtime sales & commission 85 96

• 11.3%

Insurance 131 121 7.6% Credit- interest & charges 246 229 7.5% Total revenue 673 545 23.5%  Mobile - improved performance since full ownership of MVNO from Jan 18. Focus on postpaid showing positive signs, expect improved growth in H2  Cellular - present in 249 stores (mainly mrp) selling handsets, sim cards & accessories. Onbiller gaining momentum - looking to replace airtime sold via USSD with better pricing & higher margins  Insurance - increasingly regulated environment. Sales agent accreditation requirements impacted call centre. H2 focus on growth strategy & new products  Credit

• interest revenue impacted by slower credit sales, lower repo rate & IFRS 9

(stage 3 interest not raised)

• increased monthly service fee to R10.50, well below competition

28

29

 RSA consumers have reduced their debt levels, creating room for increased saving  Credit health has improved however downward trend developing  Accounts in early default confirm deteriorating credit health levels. A sign of emerging consumer distress  Household cash flow decreased -0.4% (Transunion Q2 2018), confirming the SARB report of declining disposable income

70 65 60 55

SA Consumer Credit Index

50 45 40 35 30 07 08 09 10 11 12 13 14 15 16 17 18 Improving credit health Deteriorating credit health 15 10 5

Accounts in early default (3 months in arrears)

• 5
• 10
• 15
• 20
• 25

07 08 09 10 11 12 13 14 15 16 17 18 Rising defaults Falling defaults

Source: Transunion- SA Consumer Credit Index Q2 2018

SA credit landscape

Source: Transunion- SA Consumer Credit Index Q2 2018

66 68 70 72 74 76 78 80

• 3
• 2.5
• 2
• 1.5
• 1
• 0.5

0.5 1

Q4 2013 Q3 2014 Q2 2015 Q1 2016 Q4 2016 Q3 2017 Q2 2018

Debt to income % Saving to income %

Household saving & debt to disposable income

Saving to income Debt to income

Source: SARB

30

Credit performance

000’s

Applications & approvals

255 299 103 119 41% 40%

0% 10% 20% 30% 40% 50%

100 200 300 H1 FY2018 H1 FY2019

Applications Approvals Approval rate

 Active account growth & number of credit transactions in line with industry trends  Credit scorecard tightened & opening credit limits reduced in Q2, resulting in a decrease in approval rate  New account applications up 17.3% due to increased marketing & relaxation of affordability regulations. Approvals up 15.5%  13-36 MOB growth impacted by affordably regulations introduced in Sep ’15. New account sales up 8.9%

R1.6b

Credit sales

+2.2%

R341

Avg credit basket

+3.1%

4.7m

• 0.9%

# of credit transactions

1.4m

Active accounts

+0.6%

31

R’m Sep 2018 Mar 18 Sep 2017

Sep/Mar % change Sep/Sep % change

Retail debtors 2 116 2 134 2 011

• 0.8%

5.2% Mobile* & franchise debtors 81 60 74 32.8% 9.5% Total debtors book 2 197 2 194 2 085 0.1% 5.4% Retail debtors (97% of total)

• NBD: book (excl collection

costs) 6.2% 5.9% 5.9%

• Impairment provision

8.3% 7.7% 7.3%  Retail debtors book up 5.2%, credit sales growth 2.2%  NBD: book ratio of 6.2% (excl collection costs) increased 30bps. Including collection costs the ratio is 8.4%  Debtors impairment provision % increased due to IFRS 9 transition. In line with NBD: book (incl collection costs)  Enhanced processes in Mobile resulted in a better customer experience and an improved bad debt performance

* Includes debtors with repayment terms greater than 12 months

Trade receivables

32

R’m Sept 2018 March 2018 Non-current assets Property, plant & equip1 2 088 2 092 Intangible assets 457 433 Other non-current assets2 112 103 Current assets Inventories3 2 322 2 215 Trade & other receivables (pg 35) 2 230 2 374 Cash & cash equivalents (pg 37) 2 562 2 756 Reinsurance assets4 246 146 Total 10 017 10 119 Equity & liabilities Shareholders equity5 7 666 7 455 Non-current liabilities 262 257 Current liabilities6 2 083 2 371 Bank overdraft 6 36 Total 10 017 10 119 

1Additions of R133m (incl Kenya acquisition

• f R19m), depreciation R144m



2Higher mrpMobile long term receivables,

defined benefit pension fund & deferred tax assets 

3Gross merchandise inventory (incl GIT) up

4.8% vs Mar 18 (up 5.3% vs Sep ’17). Including Cellular up 7.3% on Sep ’17. Increased levels of freshness on PY 

4Mainly cash. Dividend to be paid in H2



5Adjustment to opening retained income of

R5m (IFRS 9: +R8m, IFRS 15 -R3m) 

6Trade & other payables down 4.4% on

Mar ’18. Up 2.3% vs Sep ’17 (higher inventory but lower GIT)

Financial position

33

2 556 2 720 2 720

29 (176) (1 094) (4) (173) (19) (600) 288 (10) 1 595

2017 Other Treasury shares Dividends Long term receivables PPE & intangibles Kenyan Acquisition Taxation Interest received Working capital Cash from operations 2018 Operating R1.3bn Investing (R0.2bn) Financing (R1.3bn)  Increase of 6.9% over H1 PY  Lower receivables & creditors offset by higher inventory  Higher cash balances & debtors book  Includes FY18 top up payment  Increase in mrpMobile contract customer base  Final FY18 dividend paid in June  Long term incentive schemes’ movement  Translation of foreign cash reserves March 2018 September 2018

Cash flow movements (R’m)

2016: 1 784 2017: 1 560  Profit after tax to free cash flow conversion ratio of 98.5%*  Plant & equipment acquired May ‘18  Additions: PPE R114m (stores: R101m), Intangibles R59m

* Excludes impact of the FY18 tax top up payment of R178m

34

Outlook

 Global impact from emerging market sentiment & US trade negotiations  Short term economic growth in RSA likely to be muted. Consumers will continue to be constrained & the competition for market share will continue in this environment  Structural changes to boost growth in the economy likely to only materialise post the national elections in 2019  Positive that with the right outcome, RSA has the potential to enter into a new economic growth phase, however this will be gradual  Forecast to open 45-50 stores in H2, with annual capex of ~R600m

Execution of our tried & tested fashion value model remains key